Project completion report : Grenada private sector development project no. 538-0013

The final project report from the grantee for the NDF component does not allow for an accurate evaluation of NDF achievements. Data are provided only through September 1987, by which time 213 loans totalling $430,000 had been provided, and about 470 jobs created. Extrapolating from these figures, it appears that overall accomplishments will be significantly below the targeted 350 loans and 1,000 jobs. Two problems hindered realization of project targets: high delinquency rates and NDF leadership problems. NDF involvement improved markedly in the last year of the project, but delinquencies were running at 14% - double the regional average. The NDF is now receiving A.I.D. support through the regional Small Enterprise Assistance Project (SEAP), which is giving particular attention to finding other financing sources for NDF's, helping them to contain costs, and fostering cooperation with other programs. Some progress has been made in strengthening the Chamber of Commerce and Industry. A Private Sector Economic Affairs Committee was established, which meets periodically with the government for dialogue on economic policy matters. Membership of the Chamber has also grown from 122 to 184, but a large body of dissatisfied manufacturers formed a splinter group, the Grenada Manufacturers Association, in 1987. Efforts to encourage cooperation between the two institutions have been unsuccessful. The Chamber may receive some support through SEAP; clearly it needs to increase contributions from its members if it is to continue operating at the same level that it has under the project. TA provided by the International Executive Service Corps (IESC) has been highly successful and cost-effective. The IESC assisted 11 entities - nine private enterprises, a public enterprise (Grenada Rock & Asphalt Corporation), and the NDF. IESC TA was critical in the start up of two of the private enterprises, and helped others to expand and improve productivity. It is expected that under SEAP, IESC assistance will be linked to a broader program.